SecurityWorldMarket

29/08/2022

Strong Prosegur financials demonstrate upturn in profits

Madrid, Spain

Prosegur has reported sales of 2,002 million euros in the first six months of 2022. This represents an increase of 22.3% versus the same period of last year.

The company expedited the favourable trend shown in the first quarter of the year with major improvements in all lines in both the accumulated first six months and in the quarter-on-quarter figures. The positive trend in sales was also accompanied by a more favourable macroeconomic environment and stable exchange rates.

As regards the profitability of operations, its EBITA stood at 130 million euros, representing an improvement of 40.7%, while the EBITA margin grew to 6.5%. The gradual trend of improvement in the margin is accelerating with a noteworthy contribution from the activities of Prosegur Security and Prosegur Cash.

In the case of security operations, profitability has received a boost from reduced non-productivity and improved technology volumes. Prosegur Security, the surveillance and technology business, reported sales of 981 million euros in the first six months of 2022, representing an increase in revenue of 18.7%. Turnover continues to reflect strong growth in the US, which stands above 50% in the period. Furthermore, sales of technology-based security solutions continue to progress rapidly.

As for Prosegur Cash, the company continues to significantly exceed the equivalent levels from the past two years.  Prosegur Cash has reported sales of 883 million euros in the first half of 2022, a total of 27.6% up on the same period of the previous year. These figures reflect the strong recovery in volumes of cash in circulation in all geographies, which is also buoyed by the inflationary situation and a slightly positive impact on foreign currency exchange.

Prosegur Alarms recorded sales of 90 million euros, with a positive organic growth of 17.0%, chiefly affected by the deconsolidation of Spain. Prosegur Avos, the business line specialised in process outsourcing and digital transformation for the financial and insurance sector, has reported growth of 34.1%, standing at 41 million euros in the first half of 2022. Lastly, Cipher, the cyber security unit, reported sales of 7 million euros in the first half of 2022.

Accordingly, Prosegur’s net profit in the first six months of the year reached 40 million euros, an increase of 39.5%. Meanwhile, the consolidated net result, discounting minority interests, reached 31 million euros, an increase of 18.5%.

In terms of cash generation, Prosegur corrected the seasonal deviation registered in the first quarter of the year, recovering levels similar to those of the second quarter of last year with a free cash flow of 44 million euros. Net financial debt at the close of the first half of the year amounted to 1,114 million euros, with an average cost of 1.47% and a stable level of indebtedness at net financial debt to EBITDA ratio of 2.3 times.


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